The General Linear Demand Function Below Is Used to Answer $Q _ { d } = a + b P + c M + d P _ { R }$

question 58

Multiple Choice

The general linear demand function below is used to answer questions :
$Q _ { d } = a + b P + c M + d P _ { R }$
where Q_d = quantity demanded, P = the price of the good, M = income,
$P _ { R }$ = the price of a good related in consumption.
-If c = 15 and d = 20, the good is

• A) a normal good.
• B) an inferior good.
• C) a substitute for good R.
• D) a complement with good R.
• E) both a and c

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Definitions:

Fatty Acid

Carboxylic acids with long aliphatic chains, which can be saturated or unsaturated, and are key components of lipids in living organisms.

Insoluble

A substance that does not dissolve in a specific solvent under certain conditions.

Phosphatidyl Choline

A major component of biological membranes, also known as lecithin, involved in membrane-mediated cell signaling and metabolism.

Lecithin

A fatty substance found in plant and animal tissues, used as an emulsifier in food production and as a supplement.